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World Bank, India Sign $299 Million Deal to Tackle Air Pollution in Uttar Pradesh

New clean air programme targets transport, agriculture and industry reforms while expanding clean cooking access and green jobs across the state.

TFI Desk by TFI Desk
16 March 2026
in Trending
World Bank, India Sign $299 Million Deal to Tackle Air Pollution in Uttar Pradesh
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The World Bank, the Government of India and the Government of Uttar Pradesh have signed an agreement to implement a $299.66 million programme aimed at improving air quality across the state while creating employment opportunities for young people and women.

The initiative, titled the Uttar Pradesh Clean Air Management Program, will support the state government’s Clean Air Plan through integrated measures across major pollution-generating sectors such as transport, agriculture and industry. Authorities say the programme is expected to deliver wider environmental benefits beyond Uttar Pradesh, particularly across neighbouring states affected by transboundary pollution in northern India.

As part of the initiative, nearly 200 new air quality monitoring stations will be installed across the state. Data from these monitors will be collected and managed by the Uttar Pradesh Pollution Control Board to strengthen air quality tracking and policy responses.

The agreement was signed by Juhi Mukherjee, Joint Secretary in the Department of Economic Affairs under the Ministry of Finance, on behalf of the Government of India; B. Chandrakala, Chief Executive Officer of the Clean Air Management Authority and Secretary of Forest, Environment and Climate Change for the Government of Uttar Pradesh; and Paul Procee, Acting Country Director for India representing the World Bank.

Clean air strategy linked to economic growth

Uttar Pradesh Chief Minister Yogi Adityanath said the state views environmental protection as central to its economic ambitions.

“Uttar Pradesh is on course to become a $1 trillion economy because we believe that economic growth, productivity, and ecological balance go hand in hand,” he said. He added that the Clean Air Management Program reflects a broader vision in which prosperity is measured not only through economic output but also through healthier citizens and a sustainable environment.

According to the World Bank, the programme is designed to mobilise almost $150 million in private investment, particularly in the transport sector and among micro, small and medium enterprises.

Paul Procee said the initiative will accelerate the transition towards cleaner technologies and transport solutions. Investments are planned in electric buses and electric three-wheelers, along with emissions monitoring systems and improved industrial technologies. These measures are expected to improve productivity while expanding access to employment for young men and women across the state.

Expanding clean energy access and agricultural reforms

The programme also includes several initiatives aimed at reducing household and agricultural pollution sources. Around 3.9 million households are expected to gain access to clean cooking solutions under the initiative.

In addition, more than 700 brick kilns across Uttar Pradesh will transition to resource-efficient technologies to reduce emissions. Farmers will be encouraged to adopt more efficient fertiliser use practices to improve crop productivity while lowering environmental impact.

Urban transport reforms will also form a key component of the project. Plans include introducing 15,000 electric three-wheelers and 500 electric buses in major cities such as Lucknow, Kanpur, Varanasi and Gorakhpur. The state government will also provide incentives to replace 13,500 polluting heavy-duty vehicles with lower-emission alternatives.

Regional effort to address a major pollution hotspot

The Uttar Pradesh initiative forms part of a broader regional programme targeting air pollution across the Indo-Gangetic Plains and Himalayan Foothills, one of the world’s most severe air pollution hotspots.

The programme adopts an “airshed approach”, focusing on pollution across wider geographic regions rather than city-specific interventions. Officials say this strategy allows states to work together to control emissions that travel across borders, potentially reducing pollution faster and at lower cost.

The Uttar Pradesh Clean Air Management Program will have a maturity period of 10 years, including a two-year grace period, and will also receive support from the multi-donor Energy Sector Management Assessment Program.

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